SEC tightens the noose on ICO-funded startups

Re:SEC tightens the noose on ICO-funded startups by JumpCrisscross on Wednesday October 10, 2018 @02:02PM (#18187387)

> you can trade them 24 hours a day, 7 days a week, from anywhere in the world with an internet connection, in any currency (theoretically) and on no fixed exchange

This describes securities, generally. You and I can transact to trade shares of Uber in renminbi on a Saturday. We can transact, over the counter and using a broker, to trade shares of Apple in Canadian dollars the following day. The Apple trade would need to be reported to the national ticker, for transparency purposes, but that’s about it.

We concentrate public equity trading into fixed windows and currencies to increase liquidity. It’s a convenience. Privately-negotiated trading is still common for large blocks of public securities.

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Re:SEC tightens the noose on ICO-funded startups by lawn on Wednesday October 10, 2018 @02:33PM (#18187649)

The obvious difference is transactions without a third party. You can also verify ICO token integrity on the blockchain yourself (via open source apps).

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Re:SEC tightens the noose on ICO-funded startups by notahacker on Wednesday October 10, 2018 @03:45PM (#18188228)

The obvious question is whether that actually matters all that much for securities, since the broker/exchange adds negligible risk and overhead for the buyer relative to the trust in the public company needed to buy a stake in it and the costs of meeting regulatory requirements for public companies.

Anybody who's more worried by the potential complications of T+2 settlement when purchasing blue chip stocks than the Wild West world of ICOs shouldn't be investing.

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Re:SEC tightens the noose on ICO-funded startups by lawn on Thursday October 11, 2018 @04:41AM (#18191835)

That is indeed the right question to ask.

Maybe it's less about trust and more about permission. With token based securities I could trade with whomever I choose whenever I want.

Interesting to see how it turns out in the end.

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Re:SEC tightens the noose on ICO-funded startups by asynchrony on Thursday October 11, 2018 @07:23PM (#18197839)

What happens if a trade that is illegal under the law of the country of the seller/buyer/exchange? The courts would be completely powerless to undo the transaction. Again it seems to me the main and only attraction is evading regulation.

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Re:SEC tightens the noose on ICO-funded startups by hndamien on Wednesday October 10, 2018 @06:35PM (#18189552)

And you can maintain custody, so somebody isn't loaning out your shares.

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Re:SEC tightens the noose on ICO-funded startups by wiredfool on Wednesday October 10, 2018 @03:53PM (#18188290)

There's a 95% accurate O(1) solution to determine if an ICO transaction has integrity.

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